Tiffany (TIF US) - LVMH: Happily Ever After

Leading Independent Investment Research, Morningstar, Inc.

Morningstar

Leading Independent Investment Research

Morningstar, Inc.

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Equity Bottom-Up

Rising global demand and tightening long-run supply lead us to believe wide-moat brands will prosper; of these, we prefer Tiffany.Tiffany's shares are undervalued now as investors have extrapolated volatile diamond prices and weak demand to lower long-term growth.Yet some of the weakness at home is due to the strong dollar and the fall in diamond prices.If long-run demand begins to outpace diamond supply, we believe the wide-moat brands are best positioned as a result of pricing power.Tiffany is one of the oldest luxury brands on our coverage list, and we believe its timeless style and culturally significant history are responsible for its wide economic moat.We judge cash flows to be strong even in poor retail markets and believe international growth opportunities are significant, yet under-appreciated by investors.Regards - Paul Swinand

Rising global demand and tightening long-run supply lead us to believe wide-moat brands will prosper; of these, we prefer Tiffany.Tiffany's shares are undervalued now as investors have extrapolated volatile diamond prices and weak demand to lower long-term growth.Yet some of the weakness at home is due to the strong dollar and the fall in diamond prices.If long-run demand begins to outpace diamond supply, we believe the wide-moat brands are best positioned as a result of pricing power.Tiffany is one of the oldest luxury brands on our coverage list, and we believe its timeless style and culturally significant history are responsible for its wide economic moat.We judge cash flows to be strong even in poor retail markets and believe international growth opportunities are significant, yet under-appreciated by investors.Regards - Paul Swinand

Changing Diamond Industry Creates Opportunities for Tiffany

Tiffany & Co

Changing Diamond Industry Creates Opportunities for Tiffany